Arizona Sonoran, Nuton mull Cactus JV cancellation

Executive Summary

• Arizona Sonoran Copper Company Inc. and Nuton LLC (a Rio Tinto venture) have mutually agreed to commence discussions in January regarding the amicable early termination of the option-to-joint-venture agreement for the Cactus project.
• The company will continue to advance the Cactus project on a stand-alone basis, leveraging the recently completed positive prefeasibility study (PFS).
• The definitive feasibility study (DFS) is targeted for completion in the second half of 2026, with a view toward a final investment decision as early as Q4 2026.

Key Details

• Transaction Update: Mutual agreement to discuss early termination of the option-to-joint-venture agreement with Nuton LLC.
• Timeline: Discussions to commence in January; no certainty on duration or outcome.
• Project Status: Advancement of the Cactus project on a stand-alone basis.
• Study Progress:
  • Recently completed positive stand-alone prefeasibility study (PFS).
  • Stand-alone definitive feasibility study (DFS) in progress.
  • DFS targeted for completion in the second half of 2026.
• Future Milestones:
  • Final investment decision targeted for as early as Q4 2026.
  • Continuing advancement of related permitting amendments.
  • Project financing work ongoing.
  • Various early development activities to be defined and actioned in the new year.
• Risk Disclosure: No certainty that negotiations will result in a definitive outcome or that any outcome will be mutually satisfactory. No further updates will be provided until a definitive update is available.

Notable Quotes

• "The company will continue to advance its Cactus project on a stand-alone basis."
• "There is no certainty as to how long such negotiations will take or that any definitive outcome will result or that any such or other outcome will be on terms mutually satisfactory to the parties."